If you want to buy anything online, better do so this year because, at the start of 2023, all low-value goods (LVG) will become more expensive as the government imposes a new sales tax.
In a news report by The Star, you will have to pay a sales tax of about 10% starting next year, through the Sales Tax (Amendment) Bill 2022, proposed changes to the Sales Tax Act 2018 will tax LVG sales.
The new law will apply to businesses that sell LVGs on an “online marketplace or manage an online marketplace” for the sale and purchase of LVGs, whether they are based in Malaysia or elsewhere, and registration with the Finance Ministry is required for LVG sellers.
Low-value goods below RM500 will be subjected to the tax, and the Finance Minister will choose the day when the new LVG tax will take effect.
The tax’s purpose is to level the playing field for locally produced items and to ensure equal tax treatment for locally produced and imported items. Currently, local producers must pay a 5% or 10% sales tax.
The new LVG tax is scheduled to go into effect on 1 January 2023 and is anticipated to levy a flat rate of 10% on both domestic and overseas sellers of such items.
